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Economic Reform and the Philippines.

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Maye:
From a Bloomberg.com search today:

"BlackRock started compiling its own Sovereign Risk Index to measure
countries' creditworthiness in June 2011. The latest quarterly update in
October rates Spain, Ireland and Italy similar to Argentina and Venezuela,
among the 10 most risky countries. S&P puts Argentina, which defaulted on
its debt in 2001, at B-, six levels below Spain. Venezuela is B+, six grades
below Italy and Ireland.

The New York-based fund manager sorts countries based on their willingness
to pay debts, their access to external funding, the strength of their
finance industries and fiscal metrics such as debt-to-GDP, according to
Brodsky.

The index shows Malaysia and Russia rank similar to the U.S., while the
Philippines is no riskier than France and the U.K."

Question to members:

Would you expect the Philippines to continue near its highest growth rate,
7.1 in ASEAN, a country worthy of investing in?  I am sure most of you who
care, know the Philippines is in the middle of the fastest growing part of
the world, Asia.  And Manila is only two hours from the roaring economic
engine of China.  Philippines is no riskier than France and the U.K. Most
believe China's economy will continue to grow. How about the Philippines?

Comments appreciated,
Meme
Living in the Philippines

Steve & Myrlita:

--- Quote from: Maye on December 26, 2012, 10:29:56 AM ---Would you expect the Philippines to continue near its highest growth rate,
7.1 in ASEAN, a country worthy of investing in?  I am sure most of you who
care, know the Philippines is in the middle of the fastest growing part of
the world, Asia.  And Manila is only two hours from the roaring economic
engine of China.  Philippines is no riskier than France and the U.K. Most
believe China's economy will continue to grow. How about the Philippines?

Comments appreciated,
Meme
Living in the Philippines

--- End quote ---
IMHO, Until the RP relaxes it's rules and it's treatment of foreigners, I don't the RP growing anywhere near it's potential. God Bless......

meylou:
"A growing economy, a transparent and business-friendly government and the country’s ongoing success in attracting foreign corporate clients to it BPO facilities, which account for approximately 70 percent of new office occupancies in Manila, have boosted Manila’s position on the investors’ list."   http://www.businessmirror.com.ph/index.php/news/top-news/6437-property-sector-s-star-brighter-in-2013
" On Thursday Standard & Poor’s Ratings Service raised its credit outlook to positive from stable, indicating that a rating upgrade looms next year. This would elevate the Philippines to investment grade, which reduces the country’s cost of borrowing and encourages more foreign investors to enter the country.

Foreign direct investments fuel business creation and expansion, thus helping generate jobs."[/i]

The country still need to manage the rising Peso to the Dollar otherwise the manufacturing sector will have a hard time exporting their products.

I would think that foreign investors would rather set up companies in the Philippines because of the country's stable government.

Beancounter:
Hi Meme

I think what you have found and others is entirely correct, however they are a relatively narrow band of measure. S & P and others simply really measure the risk of losing money if you invest directly in a country, usually in the form of bonds of some sort. Whilst this is a good indication of atracting foreign investors it's not the only one.

Of more interest will be tax treatment of profits (good in the Phillipines), government attitude to corruption (Relatively poor in the Phillipines) and of course the skill and application of the workforce (Mixed messages here that I have heard).

It is the last 3 that the really powerful Tiger economies addressed (like Malaysia) to really drive foreign investment, that it turn will drive the credit rating up and everyone will be happy.

So my message is don't wait for others to measure the Phillipines, make your own credit rating, reduce tax, stamp on corruption, and create a hardworking well educated workforce, and the money will come flooding in.
 
   

fred:

--- Quote from: Steve & Myrlita on December 26, 2012, 03:48:38 PM ---
--- Quote from: Maye on December 26, 2012, 10:29:56 AM ---Would you expect the Philippines to continue near its highest growth rate,
7.1 in ASEAN, a country worthy of investing in?  I am sure most of you who
care, know the Philippines is in the middle of the fastest growing part of
the world, Asia.  And Manila is only two hours from the roaring economic
engine of China.  Philippines is no riskier than France and the U.K. Most
believe China's economy will continue to grow. How about the Philippines?

Comments appreciated,
Meme
Living in the Philippines

--- End quote ---
IMHO, Until the RP relaxes it's rules and it's treatment of foreigners, I don't the RP growing anywhere near it's potential. God Bless......

--- End quote ---


I agree... Not many businessmen prepared to hand over 60% of their capital investment to a Filipino partner..Crazy situation.
A few take the corporation route without realizing that the constitution may one day view the foreigners role in it a sham.
As you say,the Philippines are in a great position to capitalize on the uptrend it has been experiencing for the last 5 years..But will they?
Reading between the lines it is possible.. look how the senate have just passed a bill defying the RCC.. (RH Bill)That in itself represents a real change IMO.
I like what the new President has done so far,and its a shame he only has a one,4 year term..
That said a lot of people will forget that this upturn in fortunes began after GMA came to office.

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